Private and public hospitals both provide hospital treatment in Australia, but there are important differences in how treatment is accessed, who pays for it and the choices available to patients.
Understanding the difference between public and private hospital treatment can help people better understand how private health insurance works and why some Australians choose private hospital cover.
This article explains the differences between public and private hospitals, how treatment works and how private health insurance can be used.
Key Points
- Public hospitals are funded by the Australian Government and State Governments through Medicare.
- Private hospitals are funded through a mix of private health insurance, Medicare and out-of-pocket payments.
- Private patients have more choice around their doctor and when they receive treatment.
- Private health insurance helps cover the cost of treatment as a private patient.
What is a public hospital?
Public hospitals provide hospital treatment through Australia’s public healthcare system.
Australians can receive treatment in a public hospital as a public patient, with Medicare covering the cost of the treatment.
Public hospitals provide a wide range of emergency services, surgeries and specialist treatment.
As a public patient, treatment is managed through the public hospital system and patients are treated by the doctors and specialists available within the hospital.
What is a private hospital?
Private hospitals provide hospital treatment for private patients.
People receiving treatment in a private hospital are admitted using their private health insurance hospital cover or by paying for treatment themselves.
Private hospitals provide a wide range of surgeries, procedures and specialist treatments.
Private patients are also have choice around their treating doctor and when they receive treatment.
What is the difference between being a public patient and a private patient?
One of the biggest differences between public and private hospital treatment is whether a person is admitted as a public patient or a private patient.
Public patients are treated through the public hospital system using Medicare, while private patients use private health insurance or pay for treatment themselves.
Private patients have more choice around their treating doctor and when they receive treatment.
Public patients may experience longer wait times for non-emergency procedures, particularly elective surgery.
| Public Patient | Private Patient |
|---|---|
| Treatment through the public hospital system | Treatment through a private hospital or as a private patient in a public hospital |
| Medicare covers approved treatment | Private health insurance helps cover treatment costs |
| Doctors and specialists are allocated by the hospital | More choice around treating doctor and specialist |
| Experience longer wait times for elective procedures | More control around when treatment occurs |
Can private health insurance be used in a public hospital?
Yes. Private health insurance can still be used in a public hospital if a person chooses to be admitted as a private patient.
In this situation, Medicare and private health insurance both contribute towards the cost of treatment.
Being treated as a private patient in a public hospital doesn’t result in faster treatment or a better hospital experience when compared to being treated as a public patient.
In some cases, being admitted as a private patient may result in out-of-pocket costs depending on the treatment and doctor involved.
Want to better understand what happens when you use private health insurance in a public hospital? Read our guide on Should I use private health insurance in a public hospital?.
Why do people choose private hospital cover?
Many Australians choose private hospital cover so they can access treatment as a private patient in a private hospital.
Unlike the public hospital system, private patients have choice around their doctor, where they receive treatment and when treatment takes place.
Private hospital cover also reduces the cost of treatment received as a private patient in a private hospital.
If you’re considering private hospital treatment, you can use Phoenix Health’s Find a Hospital to search for Phoenix Health Agreement Hospitals or learn more about how Agreement Hospitals work.
